Broken Hill Proprietary Financial Results.MELBOURNE, Australia--(BUSINESS WIRE)--Sept. 22, 1995-- Directors today announced an operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. after income tax attributable to BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. shareholders of $372 million for the August 1995 quarter, which compares with the 1994 profit of $373 million. There were no abnormal or extraordinary items in either quarter. The record quarterly profit from Minerals and the ongoing sound performance from Steel were offset by the disappointing result from Petroleum. Earnings per share for the current quarter decreased by 4.1% to 23.3 cents; 1994 comparative earnings per share were 24.3 cents. The lower earnings per share reflects the increased number of shares on issue. Comparative earnings per share have been restated for the May 1995 bonus share issue. Consolidated Group Results -------------------------- Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. and other revenues of $4,795 million increased by $316 million or 7.1% from the previous corresponding quarter. Operating profit before income tax reflected improved margins and at $769 million was 13.4% above the 1994 comparative period result. This improvement was offset by higher income tax charges and increased outside interests in operating profit. The major factors affecting August 1995 quarter revenues were: - in Minerals, higher revenues due to increased shipments of copper, iron ore and manganese manganese (măng`gənēs, măn`–) [Lat.,=magnet], metallic chemical element; symbol Mn; at. no. 25; at. wt. 54.938; m.p. about 1,244°C;; b.p. about 1,962°C;; sp. gr. 7.2 to 7. together with higher copper, iron ore and coal prices; - in Steel, higher export prices and sales from new overseas operations; - in Petroleum, lower revenues primarily due to lower sales volumes from Hawaiian operations and from crude oil; and - for all Businesses, the lower average A$/US$ exchange rate. Depreciation and amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years amortization reduction, step-down, diminution, decrease - the act of decreasing or reducing something 2. charges increased by $50 million to $429 million. Petroleum's charge was higher mainly reflecting higher North West Shelf (Australia) and Americas production and the commissioning of Dai Hung (Vietnam) in October 1994. Minerals' and Steel's charges increased mainly due to the commissioning of new facilities. Interest expense decreased by $2 million to $91 million mainly as a result of increased interest capitalised partly offset by higher average interest rates. Income tax expense attributable to operating profit was $312 million, an increase of $63 million over the 1994 comparative amount. The change in the Australian corporate tax rate from 33% to 36% increased income tax expense by $17 million. The other significant factor contributing to the increased tax charge was the increase in pre-tax earnings. The charge for this quarter represents an effective tax rate of 40.6% which exceeds the nominal Australian tax rate of 36% due mainly to non-deductible accounting depreciation and amortisation, foreign taxes on some overseas income and exploration expenditure in countries for which no deduction is presently available. -0- Business Group Results (after income tax) ----------------------------------------- Quarter ended 31 August ----------------------- 1995 1994 Change ---- ---- ------ $ Million $ Million % --------- --------- - Minerals 312 227 37.4 Steel 144 140 2.9 Petroleum 62 143 -56.6 Service Companies 11 11 Net unallocated interest (49) (53) Corporate and unallocated items (23) (39) _______ _______ Operating profit before outside equity interests 457 429 6.5 Outside equity interests (85) (56) _______ _______ Operating profit attributable to members of the BHP Entity 372 373 -0.3 ======= ======= Minerals -------- Minerals' profit for the quarter of $312 million was a record for the second consecutive quarter (excluding abnormal items) and 37.4% above the same quarter last year. Increased prices for copper, iron ore and coal had a significant favourable impact on the result, with higher copper prices being the major contributor. Higher shipments of copper and iron ore had a positive impact on the profit for the quarter and reflect continued strong customer demand. These factors were partly offset by higher depreciation due to the commissioning of new plant, the inclusion of the profit on sale of the Eloise copper/gold prospect (Queensland) in the August 1994 quarter and the unfavourable effect of the increase in the Australian corporate tax rate from 33% to 36%. Significant events for the quarter included: - acquisition of a 61.3% interest in the Mhondoro joint venture (Zimbabwe), which holds the mineral rights to an area adjacent to the Hartley platinum development; - announcement to expand the Yandi mine (Western Australia) capacity from 15 to 25 million tonnes per annum Per annum Yearly. , scheduled for completion in mid 1996; and - commencement of development of the $1.5 billion hot briquetted iron project at Port Hedland, Western Australia Western Australia, state (1991 pop. 1,409,965), 975,920 sq mi (2,527,633 sq km), Australia, comprising the entire western part of the continent. It is bounded on the N, W, and S by the Indian Ocean. Perth is the capital. . Steel ----- Steel's profit for the August 1995 quarter was $144 million, 2.9% above the corresponding period last year. Improved results from Slab and Plate Products Division, Collieries and New Zealand Steel New Zealand Steel is a large steel mill located at Glenbrook, New Zealand. were offset by lower profits from the other Australian operations. A 6% increase in operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. was achieved through the effects of higher export prices and increased overseas sales outweighing lower Australian sales volumes. The prices for certain steel products exported from Australia were at record levels during the quarter, although some weakening is evident for the second quarter. Steel despatches from all operations were 1.887 million tonnes, 6% below the comparative period. Domestic despatches from Australian operations were 1.089 million tonnes, a decline of 3% which was partly due to high deliveries in the month of May 1995. Exports from Australia were 17% lower at 579,000 tonnes. Despatches from New Zealand Steel were 11% higher at 136,000 tonnes. Commissioning of new coating facilities in Indonesia and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. helped lift despatches from other overseas plants by 57% to 83,000 tonnes for the quarter. Raw materials, labour, repairs and depreciation costs were higher than in the corresponding quarter last year. Labour costs in Australia increased as a result of the Steel Industry Wages Agreement and the resumption from December 1994 of Company contributions to the Group's main superannuation Superannuation An organizational pension program created by companies for the benefit of their employees. Notes: Funds deposited in a superannuation account will typically grow without any tax implications until retirement or withdrawal. plan. The increase in the Australian corporate tax rate from 33% to 36% also adversely affected profits. Significant developments for the quarter included: - announcement of the Newcastle Steelworks development program, including $180 million to be spent to maintain the blast furnaces blast furnace, structure used chiefly in smelting. The principle involved in this means of extracting metals is that of the reduction of the ores by the action of carbon monoxide, i.e., the removal of oxygen from the metal oxide in order to obtain the metal. and associated equipment until electric arc furnace An electric arc furnace (EAF) is a furnace that heats charged material by means of an electric arc. Arc furnaces range in size from small units of approximately one ton capacity (used in foundries for producing cast iron products) up to about 400 ton units used for secondary steelmaking is introduced in the year 2002; and - commissioning of a coating line facility at Rancho Cucamonga, California Rancho Cucamonga is a city in San Bernardino County, California, United States. As of the 2000 census, the city had a total population of 127,743. By July 1, 2002 Census the fast-growing city's population had reached 143,711. (USA). Petroleum --------- Petroleum's profit for the August 1995 quarter was $62 million, representing a reduction of $81 million compared to the same period last year, $17 million of this was due to higher exploration. Other major influences on the reduced profit were a loss from Dai Hung (which commenced production in October 1994), lower refinery volumes due to scheduled maintenance and depressed downstream margins. Other contributing factors were lower oil and condensate condensate, matter in the form of a gas of atoms, molecules, or elementary particles that have been so chilled that their motion is virtually halted and as a consequence they lose their separate identities and merge into a single entity. sales volumes in Australia, principally due to natural decline in Bass Strait Bass Strait (băs), channel, 80 to 150 mi (129–241 km) wide, between Tasmania and Victoria, SE Australia, connecting the Indian Ocean and Tasman Sea; Port Phillip Bay and Melbourne are on the northwest coast. (Australia) and the increased Australian corporate tax rate. Lower oil and condensate production reflects declines in Bass Strait, Timor Sea Timor Sea An arm of the Indian Ocean between Timor and Australia. Noun 1. Timor Sea - an arm of the eastern Indian Ocean between Timor and northern Australia (Australia) and Kutubu (Papua New Guinea Papua New Guinea (păp`  ə, –y ) partly offset by the inclusion of production from Dai Hung and increased production from North West Shelf. Natural gas production was higher than for the corresponding period, mainly reflecting increased gas demand from Bass Strait and Americas together with the commencement of production from the Johnston field (UK) and block K4b/5a (Netherlands) in October and November 1994, respectively. North West Shelf LNG LNG (liquefied natural gas): see under natural gas. production was higher reflecting increased Japanese contract deliveries. Exploration expenditure of $71 million was charged to profit. This charge was higher than in the corresponding period last year due to increased exploration activity in the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east (offshore USA), Bass Strait and the Zone of Co-operation (Australia/Indonesia). The exploration program during the first quarter yielded encouraging results in the Zone of Co-operation. Ten exploration blocks were obtained in the UK 16th Licencing Round. Service Companies ----------------- The profit contribution from Service Companies for the first quarter was $11 million, the same as the corresponding quarter in 1994. Higher results for Engineering and Information Technology were offset by a lower result from Transport, primarily due to the costs associated with the loss of the Iron Baron bulk carrier. Corporate and Unallocated Items ------------------------------- Corporate and unallocated items reported a loss of $23 million which compares with a loss of $39 million for the previous corresponding quarter. This improvement was mainly due to results from Treasury's foreign currency hedging activities. The Power Group, in conjunction with various partners, continues to examine the feasibility of a number of integrated power projects, primarily in Asia and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Outside Equity Interests ------------------------ Outside equity interests' share of operating profit increased due mainly to the improved results of Ok Tedi Mining Limited Ok Tedi Mining Limited is a Company from Papua New Guinea that administers the Ok Tedi Mine in the northern part of the Western Province. Its main office is located in a building known as the White House in Tabubil. . Consolidated Group Results -------------------------- Quarter ended 31 August ----------------------- 1995 1994 Change ---- ---- ------ $ Million $ Million % --------- --------- - Operating revenue Sales 4,729 4,393 7.6 Interest revenue 26 17 52.9 Other revenue 40 69 -42.0 ------- ------- 4,795 4,479 7.1 ------- ------- Operating profit before depreciation, amortisation and interest expense 1,289 1,150 12.1 Deduct: Depreciation and amortisation 429 379 13.2 Interest expense (a) 91 93 -2.2 ------- ------- Operating profit before income tax 769 678 13.4 Deduct: Income tax expense attributable to operating profit 312 249 25.3 ------- ------- Operating profit after income tax 457 429 6.5 Deduct: Outside equity interests in operating profit after income tax 85 56 51.8 ------- ------- Operating profit after income tax, attributable to members of the BHP Entity 372 373 -0.3 ======= ======= Basic earnings per share (b)(c) 23.3c 24.3c -4.1 Earnings per American Depositary Share American Depositary Share (ADS) Foreign stock issued in the US and registered in the ADR system. (c)(d) US$0.70 US$0.72 Average A$/US$ hedge settlement rate 73c 74c (a) Excludes capitalised interest of $48m $35m (b) Based on operating profit after income tax attributable to members of BHP divided by the weighted average number of $1.00 fully paid shares. The weighted average number of shares (1,597,412,508) excludes BHP shares held by Beswick. BHP shares held by Beswick at period end were 338,066,630 (1994 - 307,333,300). Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of is not reported as it is not materially different from basic earnings per share. (c) 1994 comparatives have been adjusted for the 1995 bonus issue of 1 for 10. (d) Each American Depositary Share (ADS) represents four ordinary $1.00 shares. Translated at the noon buying rate on 31 August 1995 as certified See certification. by the Federal Reserve Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. A$1=US$0.7517 (1994 A$1=0.7444). Segment Results --------------- Operating profit after ---------------------- income tax before ----------------- outside equity -------------- interests Operating revenue (1) --------- ----------------- Quarter ended 31 August ----------------------- $ Million --------- 1995 1994 1995 1994 ----------------- ------------------ Industry segments Minerals 312 227 1,702 1,472 Steel 144 140 1,930 1,826 Petroleum 62 143 1,039 1,113 Service Companies 11 11 534 533 Net unallocated interest (49) (53) 25 17 Corporate & unallocated (23) (39) 19 (26) items (2) ------- ------- BHP Group 457 429 4,795 4,479 ======= ======= ======= ======= (1) Operating revenues do not add to the BHP Group figure due to intersegment transactions. (2) Includes consolidation adjustments. -0- The financial data upon which this report has been based complies with the requirements of the Corporations Law, with all applicable accounting standards and gives a true and fair view of the matters disclosed. The results are unaudited. The Company has a formally constituted Audit Committee of the Board of Directors. Details of equity accounting are not included in this report. Half Yearly Dividend -------------------- The Directors are pleased to announce that a half yearly dividend will be paid on 29 November 1995 at the rate of 25.0 cents per $1.00 fully paid ordinary share. The dividend represents an increase of 14.6 percent over the November 1994 dividend of 24.0 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. after taking into account the May 1995 bonus issue of 1 for 10. The November 1995 dividend will be fully franked. The franking rate will be at 33 cents in the dollar unless proposed legislation relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc 36 percent franking credits A franking credit is a nominal unit of tax paid by companies paying tax in countries that have a dividend imputation system. Franking credits are passed on to shareholders along with dividends. , which is yet to be introduced into Parliament, allows a higher rate. The books' closing date (or record date) for payment of the dividend will be Friday, 10 November 1995. Shareholders who have, prior to 22 September 1995, elected to participate in the Company's Bonus Share Plan and/or Dividend Investment Plan will receive shares in accordance with those plans. American Depositary Shares (ADSs) each represent four ordinary $1.00 shares, and receive dividends accordingly. The record date for ADSs is 9 November 1995. Transfer documents will be accepted for registration at the Company's share registers (and in the case of ADSs, the US Depositary DEPOSITARY, contracts. He with whom a deposit is confided or made. 2. It is, the essence of the contract of deposits that it should be gratuitous on the part 'of the depositary. 9 M. R. 470. ) at the following addresses: Australia 600 Bourke Street Melbourne 3000 UK Bristol Securities Services - Registrars The Royal Bank of Scotland
The Royal Bank of Scotland Plc (Scottish Gaelic: Banca Rìoghail na h-Alba plc Caxton House, Redcliffe Way Bristol BS99 7NH USA New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Morgan Guaranty As a verb, to agree to be responsible for the payment of another's debt or the performance of another's duty, liability, or obligation if that person does not perform as he or she is legally obligated to do; to assume the responsibility of a guarantor; to warrant. Trust Co of New York 60 Wall Street New York NY 10260-0060 Secretary The Broken Hill Proprietary Company Limited CONTACT: Broken Hill Proprietary Pierre Hirsch, 415/774-2030 |
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